Glossary

Financial Aid Glossary

A notification from CCBC stating the type and amount of financial aid you are eligible to receive. Check your SIMON account for specific award information.

Budget

A financial plan that helps students track their money, make informed spending decisions, and plan financial goals.

Capitalization

The addition of unpaid interest to the principal balance of your student loan. When the interest is not paid as it accrued during periods of in-school status, the grace period, deferment, or forbearance, your lender(s) may capitalize the interest. This increases the outstanding principal amount due on the loan and may cause your monthly payment amount to increase. Interest is then charged on that higher principal balance, increasing the overall cost of the loan.

Cost of Attendance

Also known as a student budget. The total amount estimated for a student to attend CCBC per semester or per year. It can include tuition and fees, books and supplies, room and board, transportation, personal expenses, and loan fees. The cost of attendance can increase or decrease based on your enrollment. Check your SIMON (LINK) account for your customized cost of attendance.

Default

Failure to repay a loan according to the terms agreed to in the Master Promissory Note (MPN). For most federal student loans, you will default if you have not made payment in more than 270 days. This will affect your credit score.

Deferment

A postponement of payment on a loan that is allowed under certain conditions and during which interest does not accrue on Direct Subsidized loans, Subsidized Federal Stafford Loans, and Federal Perkins Loans. All other federal student loans that are deferred will continue to accrue interest. Any unpaid interest that accrued during the deferment period may be added to the principal balance of the loan(s).

Dependent Student

A student who does not meet any of the criteria for an independent student. An independent student is one of the following: at least 24 years old, married, a graduate student, a veteran, a member of the armed forces, an orphan, a ward of the court, someone with legal dependents other than a spouse, an emancipated minor or someone who is homeless or at risk of becoming homeless.

Direct Consolidation Loan

A federal loan made by the US Department of Education that allows you to combine one or more federal student loans into one new loan. As a result of consolidation, you will have to make only one payment each month on your federal loans, and the amount of time you have to repay your loan will be extended.

Direct Loan

A federal student loan for which eligible students and parents borrow directly from the US Department of Education through CCBC.

Direct PLUS Loan

A federal loan made by the US Department of Education to parents of dependent undergraduate students which the borrower is fully responsible for paying the interest regardless of the loan status.

Disbursement

Payment of federal, state, institutional funds to the student account by CCBC. Students may have more than one disbursement depending on the type of aid and enrollment.

Eligible Non-citizen

A US national, permanent resident or an individual who has an Arrival-Departure Record (I-94) from United States Citizenship and Immigration Services (USCIS) showing one of the following designations: Refugee, Asylum Granted, Cuban-Haitian Entrant, Conditional Entrant, Victims of human trafficking, and Parolee.

Emancipated Minor

An individual (under the age of 18) who has legally been determined to be an adult by a court in his or her state of legal residence.

An online counseling session for all first-time federal student loan borrowers that explains your rights and responsibilities as a student borrower.

Exit Counseling

An online counseling session that occurs once you graduate, stop attending, or drop below half-time status that explains your loan repayment responsibilities and when repayment begins.

Expected Family Contribution (EFC)

This is the number that is used to determine student eligibility for federal, state, and institutional aid. This number results from the information provided on your FAFSA.

Federal School Code

An identifier that the US Department of Education assigns to each school who participates in federal financial aid. CCBC’s school code for all campuses is 002063.

Federal Student Aid Personal Identification Number (PIN)

An electronic personal identification number that serves as an identifier to allow access to the FAFSA and as a digital signature.

Federal Student Loan

A loan funded by the federal government to help pay the student’s education. A federal student loan is borrowed money you must repay with interest.

Federal Work Study

A federal student aid program that provides part-time employment while students are enrolled in college.

Financial Need

The difference between the cost of attendance (COA) and Expected Family Contribution (EFC).

Forbearance

A period during which your monthly loan payments are temporarily suspended or reduced. The lender(s) may grant the student a forbearance if there are issues making loan payments due to certain types of financial hardships. During forbearance, principal payments are postponed but interest continues to accrue. Unpaid interest that accrues during the forbearance will be added to the principal balance of the loans, increasing the total amount owed.

Independent Student

An independent student is one of the following: at least 24 years old, married, a graduate student, a veteran, a member of the armed forces, an orphan, a ward of the court, or someone with legal dependents other than a spouse, an emancipated minor or someone who is homeless or at risk of becoming homeless.

Interest

A loan expense charged for the use of borrowed money.

Interest Rate

The percentage at which interest is calculated the student loan(s).

Lifetime Eligibility Used (LEU)

The amount of all Federal Pell Grant aid (in percentage) awarded to the student, divided by the amount of Pell Grant aid that would have been eligible to receive based on full-time enrollment. The amount of Federal Pell Grant funds a student may receive over his or her lifetime is limited by federal law to be the equivalent of six years of Pell Grant funding.

Loan Servicer

A company that collects payments, responds to customer service inquiries, and performs other administrative tasks associated with maintaining a federal student loan on behalf of the lender.

Master Promissory Note (MPN)

A binding legal document that students must sign to receive a federal student loan. The MPN lists the terms and conditions under which the student agrees to repay the loan and explains the rights and responsibilities as a borrower. CCBC requires completion of the MPN before loan funds will be disbursed to the student account.

Overpayment

The disbursement of more federal student aid funds to a student than he or she is eligible to receive.

Private Loan

A non-federal loan made by a lender such as a bank, credit union, state agency, or school.

Student Aid Report (SAR)

A summary of the information submitted on the Free Application for Federal Student Aid (FAFSA). This report is emailed a few days after the FAFSA has been processed or by mail within 7-10 days if an email address is not provided. address is not provided.

Subsidized Loan

A loan based on financial need for which the federal government pays the interest that accrued while the borrower is in an in-school, grace, or deferment status.

Unsubsidized Loan

A loan for which the borrower is fully responsible for paying the interest regardless of the loan status. Interest on unsubsidized loans accrues from the date of disbursement and continues throughout the life of the loan.

Verification

The process CCBC uses to confirm the data reported on the student’s FAFSA is accurate. CCBC will contact you via your SIMON and CCBC email account requesting documentation that supports income and other information reported on the FAFSA.